29 August 2018 – Revision of threshold for the use of the Short Public Works Contract (PW-CF6)

The Short Public Works Contract (PW-CF6) was introduced by Circular 04/08 specifically for non-complex works projects with a value of €0.5m or less.

Following the review of the public works contracts in 2014, a number of changes were made to the forms of contract for larger projects in 2016 in order in increase project definition and discipline.  However these new requirements have proven disproportionate for projects at the lower end of the spend thresholds.  The use of a Bill of Quantities (BQ) is generally not considered cost effective on a project with a value less than €1m unless there are particular circumstances which would justify its use.

The threshold has been raised from €0.5m to €1m where the simpler form of contract (PW-CF6) may be used, thereby reducing costs and complexity for public bodies and contractors where used.  Contracting authorities who require a BQ on a project with a value less than €1m may do so by opting to use PW-CF5.

Circular 10/2018, published today, modifies the threshold figures cited in the original Circular 04/2008, leaving the circular itself in place.  With effect from today (i.e. the date of Circular 10/2018), the revised threshold value of €1,000,000 will apply to all contract notices published.

Guidance under the CWMF will be updated to reflect the threshold change next week.